ECB prepares 'bad bank' plan for wave of coronavirus toxic debt – Reuters
|Citing two people familiar with the matter, Reuters reports that the European Central Bank (ECB) officials are reportedly drafting a plan to deal with potentially hundreds of billions of euros of unpaid loans in the wake of the coronavirus outbreak.
One of the people familiar with the plan said, “the ECB had set up a task force to look at the idea of a "bad bank" to warehouse unpaid euro debt and that work on the scheme had accelerated in recent weeks.”
The ECB declined to comment on whether it was working on a bad bank scheme, Reuters reported.
Market reaction
The shared currency had little to impact on the above headlines, with EUR/USD holding firmer above 1.1350 amid pre-Fed broad US dollar weakness.
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